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  1. #1
    rmsh16 is offline Senior Member
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    Default Transportation cost

    Pl. proofread.....



    At present Logistics (LO) is compiling & analyzing the details of per kg transportation cost for wholesale F&V dispatches and also for FMCG retail plus F&V dispatches.

    Many times when retail FMCG items & retail F&V items are sent to various retail / wholesale locations, LO is not getting the weight of retail FMCG items sent to various locations / retail stores. Total weight of the FMCG items are not mentioned in the transfer note. It appears that warehouse software system do not have the option to log weight of each FMCG item mentioned in the transfer note. Due to this LO can not take into account of the weight of retail items.
    So LO is analyzing the transport cost of FMCG dispatches along with F&V items sent to retail.

    In Aprilí 08, transport cost per kg Wholesale Rs.0.24. FMCG retail & F&V items combined transport cost Rs.0.40/ kg. Average both wholesale & retail Rs.0.32 per kg. All put together, in real terms, our transportation cost for FMCG retail account around 3 %, compared to the total value of sales, which our marketing department say the transport cost is well with in the limit.

    If we want to get a separate FMCG transport cost per kg, we have to incorporate an option in software to capture weight of each nit of FMCG item dispatched to retail stores through Transfer note.

  2. #2
    RonBee's Avatar
    RonBee is offline Moderator
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    Default Re: Transportation cost

    Quote Originally Posted by rmsh16 View Post



    At present Logistics (LO) is compiling & analyzing the details of the per kg transportation cost for wholesale F&V dispatches and also for FMCG retail plus F&V dispatches.

    Many times when retail FMCG items & retail F&V items are sent to various retail / wholesale locations, LO is not getting the weight of retail FMCG items sent to various locations / retail stores. Total weight of the FMCG items are not mentioned in the transfer note. It appears that warehouse software systems do not have the option to log weight of each FMCG item mentioned in the transfer note. Due to this LO cannot take into account the weight of retail items.
    So LO is analyzing the transport cost of FMCG dispatches along with F&V items sent to retail outlets.


    Quote Originally Posted by rmsh16 View Post

    In April’ 08, the transport cost per kg was wholesale Rs.0.24. FMCG retail & F&V items combined transport cost was Rs.0.40/ kg. Average both wholesale & retail was Rs.0.32 per kg. All put together, in real terms, our transportation cost for FMCG retail account was around 3 %, compared to the total value of sales, and our marketing department says the transport cost is well within the limit.

    If we want to get a separate FMCG transport cost per kg, we have to incorporate an option in software to capture the weight of each unit of FMCG item dispatched to retail stores through Transfer note.

    I am not as sure of that part because of the terms I do not understand.

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